The Old World Order For Crude Oil Is Disappearing

The Old World Order For Crude Oil Is Disappearing

Russian Energy Minister Nikolai Shulginov said on Tuesday that his country has now been able to redirect all of its crude oil exports that have been impacted by Western sanctions over Ukraine to what he referred to as "friendly" countries. "I can say today that we have managed to completely redirect the entire volume of exports affected by the embargo. There was no decrease in sales," Shulginov was quoted by Reuters as saying.

The Rise of BRICS

There is no question that Russia’s fellow members of the increasingly influential BRICS (Brazil, Russia, India, China, South Africa) Alliance have played a major role in helping the Putin government to achieve this outcome. India was the biggest buyer of Urals grade crude in March, accounting for almost 50% of all such exports. Russia’s Deputy Prime Minister, Alexander Novak, stated that Russia’s sales to India have risen 22-fold over the past year.

In a separate story in early March, Reuters reported that China’s seaborne imports of Russian crude were set to hit new record highs in March, based on ship tracking data. “Tanker tracking consultancies Vortexa and Kpler estimated nearly 43 million barrels of Russian crude oil, comprising about at least 20 million barrels of ESPO